@mudraforge/statutory 2.4.1 → 2.5.0

package/docs/CORPUS_QUALITY.md

@@ -3,7 +3,7 @@
 > **Format Reference**: Inspired by Google's *Data Cards Playbook* and the OpenSSF Project Quality Standards.  
 > **Target Package**: `@mudraforge/statutory` v2.4.0  
 > **Evaluation Mode**: Machine-audited against primary sources, official gazettes, and test fixtures.  
-> **Generated Timestamp**: 2026-10-24T05:46:25.842Z
+> **Generated Timestamp**: 2026-10-24T15:20:46.069Z
 
 ---
 
@@ -11,11 +11,11 @@
 
 | Dimension | Metric | Denominator / Baseline | Coverage Rate | Status |
 | :--- | :--- | :--- | :--- | :--- |
-| **Primary Source Citations** | 21 resolvable gazette URLs | 21 total citations declared | **100.0%** | VERIFIED |
-| **Temporal Validity Bounds** | 8 sections with explicit dates | 8 total bundled sections | **100.0%** | VERIFIED |
-| **Dual-Act 2025 Transition Bridges** | 3 direct tax provisions mapped | 4 direct tax provisions | **75.0%** | VERIFIED |
-| **Attached Administrative Circulars** | 8 official circulars | 6 sections across 4 domains | **100% Attached** | VERIFIED |
-| **Attached Return/Compliance Schemas** | 10 schemas/templates | 6 sections across 4 domains | **100% Attached** | VERIFIED |
+| **Primary Source Citations** | 30 resolvable gazette URLs | 30 total citations declared | **100.0%** | VERIFIED |
+| **Temporal Validity Bounds** | 11 sections with explicit dates | 11 total bundled sections | **100.0%** | VERIFIED |
+| **Dual-Act 2025 Transition Bridges** | 6 direct tax provisions mapped | 7 direct tax provisions | **85.7%** | VERIFIED |
+| **Attached Administrative Circulars** | 11 official circulars | 6 sections across 4 domains | **100% Attached** | VERIFIED |
+| **Attached Return/Compliance Schemas** | 14 schemas/templates | 6 sections across 4 domains | **100% Attached** | VERIFIED |
 | **Cryptographic Merkle Verification** | 20 bundle files verified | SHA-256 Merkle root digest | **0 Mismatches** | VERIFIED |
 
 ---
@@ -50,8 +50,11 @@
 | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
 | **50B** | Special provision for computation of capital gains in case of slump sale | Income-tax Act, 1961 (Act No. 43 of 1961) | `2000-04-01` to `OPEN_ENDED` | `ACTIVE` | 3 | 2 | 2 | Income-tax Act, 2025 (Section 78 (Capital gains on slump sale of undertakings)) |
 | **206C(1H)** | Collection of tax at source by seller on receipt of consideration for sale of goods (Omitted effective 1 April 2025) | Income-tax Act, 1961 | `2020-10-01` to `2025-03-31` | `SUNSET_SUPERSEDED` | 2 | 1 | 0 | Finance Act, 2025 (Statutory Sunset) (Section 206C(1H) Omitted) |
+| **194H** | Deduction of tax at source on commission or brokerage | Income-tax Act, 1961 (Act No. 43 of 1961) | `2001-06-01` to `2026-03-31` | `SUNSET_SUPERSEDED` | 3 | 1 | 1 | Income-tax Act, 2025 (Section 393(1), Table 4, Item (i)) |
+| **194C** | Deduction of tax at source on payments to contractors and sub-contractors | Income-tax Act, 1961 (Act No. 43 of 1961) | `1972-04-01` to `2026-03-31` | `SUNSET_SUPERSEDED` | 3 | 1 | 2 | Income-tax Act, 2025 (Section 393(1), Table 3, Item (i)) |
 | **194Q** | Deduction of tax at source on payment of a certain sum for purchase of goods | Income-tax Act, 1961 (Act No. 43 of 1961) | `2021-07-01` to `2026-03-31` | `SUNSET_SUPERSEDED` | 2 | 2 | 2 | Income-tax Act, 2025 (Section 393(1), Table 8, Item (ii)) |
 | **393** | Deduction of tax at source on payment of a certain sum for purchase of goods | Income-tax Act, 2025 (Act No. 1 of 2025) | `2026-04-01` to `OPEN_ENDED` | `ACTIVE` | 3 | 0 | 0 | N/A |
+| **194I** | Deduction of tax at source on payment of rent | Income-tax Act, 1961 (Act No. 43 of 1961) | `1994-06-01` to `2026-03-31` | `SUNSET_SUPERSEDED` | 3 | 1 | 1 | Income-tax Act, 2025 (Section 393(1), Table 5, Item (i)) |
 | **194J** | Fees for professional or technical services, royalty, and non-compete fees | Income-tax Act, 1961 | `1995-07-01` to `2026-03-31` | `SUNSET_SUPERSEDED` | 2 | 1 | 1 | Income-tax Act, 2025 (Section 393(1), Table 6, Item (iii)) |
 | **17(5)** | Apportionment of credit and blocked input tax credits | Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) | `2017-07-01` to `OPEN_ENDED` | `ACTIVE` | 3 | 1 | 1 | CGST Act, 2017 (In force) (Section 17(5)(b)(i) & (b)(iii)) |
 | **IRC-901-904** | Foreign Tax Credit authorization, separate basket limitation, and partnership pass-through reporting (Form 1116 / Schedule K-3) | Internal Revenue Code of 1986 (Title 26, U.S. Code) | `2021-01-01` to `OPEN_ENDED` | `ACTIVE` | 2 | 0 | 2 | Title 26, U.S. Code (Continuous) (26 U.S.C. §§ 901, 904(d), 904(j), 469) |

package/docs/PILOT_EVALUATION_GUIDE.md

@@ -0,0 +1,149 @@
+# MudraForge Adesha — Proposed Accounts Payable Pilot Evaluation Guide
+## Protocol for Bounded Historical Shadow Audits
+
+> **Document Type**: Proposed Enterprise Pilot Specification  
+> **Status**: Proposed Pilot Protocol (Not evidence of an active commercial customer deployment)  
+> **Target Audience**: Chief Financial Officers (CFOs), Heads of Tax, Accounts Payable Directors, Enterprise Risk Officers  
+
+---
+
+## 1. Context & Purpose
+
+This document outlines a proposed, non-invasive evaluation protocol for enterprise finance teams seeking to assess the statutory accuracy and audit capabilities of MudraForge Adesha.
+
+A core operational challenge in corporate finance operations is ensuring consistent adherence to complex statutory withholding regimes, cumulative financial-year threshold tracking, and commercial delayed-payment regulations without disrupting active business operations. 
+
+This proposed pilot enables an organization to test MudraForge's deterministic statutory engine against **historical, customer-approved accounts payable records** in a strictly read-only, advisory setting before considering any live workflow integration.
+
+---
+
+## 2. Pilot Objective
+
+The primary objective of the proposed pilot is to evaluate historical vendor transactions against machine-readable statutory baselines to identify potential discrepancies in:
+1. **Withholding Tax (TDS) Classification**: Proper categorization under Section 194C (Contractors: 1% individual vs. 2% company), Section 194J (Technical Services 2% vs. Professional 10%), Section 194I (Rent: 2% machinery vs. 10% land/building), and Section 194H (Commission: 2% post-October 2024 vs. 5% prior).
+2. **Cumulative FY Threshold Handling**: Verifying whether cumulative vendor payments properly triggered statutory deduction gates upon crossing legal limits (e.g., Section 194Q ₹50 Lakhs excess, Section 194C ₹1 Lakh aggregate / ₹30,000 single bill).
+3. **GST Unbundling Adherence**: Checking whether withholding tax was deducted strictly on basic contract value or incorrectly calculated on gross invoice amounts including separately stated GST (CBDT Circular No. 23 of 2017).
+4. **Legislative Sunset Adherence**: Confirming that seller TCS under Section 206C(1H) was not applied to transactions post-1 April 2025.
+5. **MSME Delayed Payment Compliance**: Flagging payments to verified Micro and Small enterprises exceeding 15 days (oral) or 45 days (written agreement) under Sections 15 and 16 of the MSMED Act, 2006, along with associated Section 43B(h) disallowance risks.
+
+---
+
+## 3. Proposed Candidate Inputs & Progressive Staging
+
+To minimize operational effort for the customer's finance team, the proposed evaluation follows a staged approach:
+
+- **Stage 1 (Initial Calibration Sample — 30 to 50 Invoices)**: Begin with a targeted, representative sample of 30 to 50 historical invoices with known deduction outcomes and supporting records. This verifies column mappings, confirms ingestion formatting, and calibrates baseline rules with minimum time investment from the client.
+- **Stage 2 (Expanded Audit — 200 to 500 Invoices)**: Once the workflow, field mapping, and review protocols are established in Stage 1, the evaluation can expand to a full quarter's volume (200 to 500 records) to assess broad cumulative thresholds (such as Section 194Q and 194C cumulative annual limits).
+
+To perform the evaluation, the customer provides an export (CSV or structured tabular extract) containing the following fields:
+
+| Field Group | Required Parameters | Purpose in Evaluation |
+| :--- | :--- | :--- |
+| **Transaction Metadata** | Invoice Number, Invoice Date, Booking Date | Evaluates temporal validity and applicable legislative regime (1961 Act vs. 2025 Act). |
+| **Vendor Identity** | Vendor Legal Name, Entity Type (Individual, Firm, Co.), Vendor PAN, GSTIN | Determines applicable rate schedules (e.g. 1% vs 2% under 194C; 20% under 206AA if PAN missing). |
+| **Financial Values** | Basic Taxable Amount, CGST, SGST, IGST, Total Invoice Gross Amount | Verifies basic-value unbundling vs. gross withholding. |
+| **Statutory Classification** | Line-item expense description, historical TDS section applied, historical TDS amount deducted | Compares historical treatment against engine ground truth. |
+| **Settlement Dates** | Payment / Clearance Date, Payment Method | Measures settlement timelines against the MSMED statutory payment clock. |
+| **Enterprise Attributes** | Vendor MSME Registration Type (Micro, Small, Medium, Trader), Udyam Number (if on file) | Filters MSME delayed-payment rules (applying trader exclusion under OM 2/1(5)/2021). |
+
+---
+
+## 4. Processing Workflow & Exception Handling
+
+The evaluation runs as an offline, non-intrusive batch process:
+
+```
+[Customer AP Extract] ──► Input Validation ──► Statutory Rule Engine ──► Discrepancy Analysis ──► Human Review Gate
+                                                                                                    ↓
+                                                                                        [Advisory Audit Report]
+```
+
+### The Human-in-the-Loop Ambiguity Standard
+In real-world finance operations, certain vendor invoices present legal ambiguities that cannot be resolved from numbers alone (e.g., mixed composite contracts involving both equipment supply and installation labour).
+
+- **Explicit Fail-Closed Policy**: The evaluation engine does not guess or force an arbitrary classification on ambiguous transactions.
+- **Flagged Review Categories**: When input data lacks sufficient granularity (such as missing scope-of-work documentation or ambiguous GST itemization), the system categorizes the record as `REQUIRES_HUMAN_REVIEW` with an explicit note explaining the legal assumption required.
+
+---
+
+## 5. Pilot Deliverables
+
+At the conclusion of the evaluation, the customer receives an **Advisory Accounts Payable Discrepancy & Verification Report** comprising:
+
+1. **Executive Findings Summary**:
+   - Total records evaluated vs. records with complete statutory determinability.
+   - Aggregate count of matched historical treatments.
+   - Aggregate count of flagged statutory variances.
+2. **Detailed Discrepancy Register (Tri-Part Classification)**:
+   Findings are strictly classified into three distinct categories to avoid premature legal assumptions:
+   - **Category A — Confirmed Calculation Differences**: Mathematical or rounding discrepancies on settled statutory rates, unbundled GST arithmetic, or clearly crossed financial thresholds.
+   - **Category B — Potential Statutory Discrepancies**: Inconsistent rates or threshold treatments where all input facts (PAN, entity type, invoice date) appear complete on the face of the record.
+   - **Category C — Items Requiring External Documentation Verification**: Apparent rate differences that may be legally justified by unrecorded external documents (e.g. an Assessing Officer certificate for lower deduction under Section 197, a Section 194C(6) goods transporter ownership declaration, or an MSME trader NIC classification exclusion). The report flags these as *verification checkpoints* rather than claiming a tax error.
+3. **Statutory Audit Trail**:
+   - For every flagged variance: the exact governing statute, applicable section code, official Gazette citation, and relevant CBDT/CBIC executive circular.
+4. **Unresolved Assumptions Log**:
+   - Comprehensive inventory of records requiring internal company tax counsel determination.
+
+> **Important Commercial Notice**: The pilot report is strictly analytical and advisory. MudraForge does not guarantee that a pilot will discover historical errors, recoverable tax sums, or cash savings; the value of the evaluation is establishing an empirical baseline of compliance consistency.
+
+### What the Proposed Pilot Demonstrates vs. What It Cannot Establish
+
+| What the Pilot Can Demonstrate | What It Cannot Establish by Itself |
+| :--- | :--- |
+| The engine can process customer-supplied historical invoice extracts. | It can seamlessly ingest every ERP or arbitrary billing format without custom mapping. |
+| Calculations agree with independently verified tax outcomes on clear-cut cases. | Every statutory interpretation or tax deduction across all scenarios is legally infallible. |
+| Discrepancies and assumptions are fully traceable to primary gazette citations. | The client will necessarily achieve a specific financial saving or tax recovery. |
+| Repeat runs on the same input data produce mathematically identical results. | Production deployment readiness, real-time banking security, or live ERP integration. |
+
+---
+
+## 6. Security, Confidentiality & Data Handling
+
+> **Confidentiality Note on Historical Data**: Historical accounts payable records are not zero-risk. Invoices contain confidential supplier identities, commercial pricing structures, PANs, and banking metadata. Running locally or within customer-designated infrastructure minimizes external exposure, but strict data handling, field masking, and deletion agreements remain mandatory prerequisites before transferring any real records.
+
+To protect enterprise data, the pilot protocol defines clear operational boundaries:
+
+### Verified Baseline Capabilities
+- **Local / On-Premise Execution Option**: The core evaluation engine and statutory commons can execute locally within the customer's designated environment with zero external network connectivity.
+- **Read-Only Scope**: The evaluation accesses only historical records provided by the customer. It contains no programmatic write access to the customer's ERP, general ledger, or banking infrastructure.
+
+### Pilot Prerequisites (To Be Agreed in Writing Prior to Initiation)
+Prior to transferring any sample data or initiating evaluation scripts, the parties will establish:
+1. **Bilateral Non-Disclosure Agreement (NDA)**: Governing proprietary financial and supplier pricing data.
+2. **Customer-Side Field Masking / Anonymization**: The customer may optionally hash or mask sensitive fields (such as bank account numbers or internal vendor IDs) prior to transmission.
+3. **Data Retention & Disposal Schedule**: Agreement on secure disposal of evaluation extracts within a defined period (e.g., 30 days post-report delivery).
+4. **Environment Specification**: Mutual agreement on whether processing occurs on customer-controlled workstations or a private cloud environment.
+
+---
+
+## 7. Strict Operational Boundaries
+
+To prevent operational ambiguity, the boundaries of this proposed pilot are explicitly defined:
+
+- **No Live Ledger Mutations**: The pilot will not post journal entries, alter general ledger balances, or modify vendor records in the customer's accounting system (SAP, Zoho Books, Tally, NetSuite).
+- **No Money Movement**: The pilot does not connect to banking APIs, issue payment orders, or disburse funds.
+- **No Regulatory Filing**: The pilot does not generate or submit Form 26Q returns or TDS challans to the Income Tax Department.
+- **Not Formal Legal Advice**: Deliverables constitute technical compliance analysis and do not replace legal opinions from the customer's statutory tax auditors or legal counsel.
+
+---
+
+## 8. Success & Evaluation Criteria
+
+Before initiating a pilot, both parties agree to measurable evaluation benchmarks:
+
+| Criterion | Definition | Evaluation Metric |
+| :--- | :--- | :--- |
+| **Input Completeness** | Sufficiency of customer data to determine statutory applicability | Percentage of records with complete necessary fields ($\ge 90\%$ target) |
+| **Calculation Accuracy** | Agreement on clear-cut cases governed by settled law | $100\%$ mathematical and threshold agreement on verified records |
+| **Ambiguity Handling** | Clean separation of uncertain cases without hallucinated conclusions | $100\%$ of incomplete or composite records flagged for human review |
+| **Statutory Traceability** | Every variance cited to primary gazette or executive circular | $100\%$ citation resolution to official government sources |
+| **Audit Reproducibility** | Repeated runs across the same dataset produce identical outputs | Zero variance across repeat deterministic runs |
+
+---
+
+## 9. Initiating a Pilot Discussion
+
+To discuss a proposed historical AP evaluation, review sample schema formats, or coordinate data requirements:
+- **Email**: [hello@mudraforge.in](mailto:hello@mudraforge.in) or [support@mudraforge.in](mailto:support@mudraforge.in)
+- **Direct Founder Contact**: Mondeep Engti at [mondeepe@gmail.com](mailto:mondeepe@gmail.com)
+- **Official Documentation**: [https://mudraforge.in/docs](https://mudraforge.in/docs)

package/okf/direct_tax/tds_commission_194h/circulars/finance_act_2024_rate_cut_memo.md

@@ -0,0 +1,29 @@
+---
+id: finance_act_2024_194h_rate_cut
+title: Finance (No. 2) Act, 2024 - Reduction of TDS Rate on Commission and Brokerage
+authority: Parliament of India / Ministry of Finance
+date: 2024-08-16
+statutory_section: Section 194H
+valid_from: 2024-10-01
+valid_to: OPEN_ENDED
+temporal_status: ACTIVE
+subject: Statutory reduction of TDS deduction rate on commission or brokerage from 5% to 2%
+official_url: https://incometaxindia.gov.in
+---
+
+> [STATUTORY VALIDITY WINDOW & TEMPORAL STATUS]  
+> **Valid From**: 1 October 2024  
+> **Valid To**: OPEN_ENDED  
+> **Temporal Status**: ACTIVE  
+> **Applicable Principle**: Tax deduction rate on commission/brokerage is 2% for payments made or credited on or after 1 October 2024 (previously 5%).  
+
+# Finance (No. 2) Act, 2024: Amendment to Section 194H
+
+## 1. Statutory Amendment
+Section 194H of the Income-tax Act, 1961 was amended by the Finance (No. 2) Act, 2024 (Act No. 15 of 2024) to reduce the rate of withholding tax on commission or brokerage:
+- Prior to 1 October 2024: 5%
+- On or after 1 October 2024: 2%
+
+## 2. Invariable Conditions
+- Threshold of ₹15,000 in aggregate per financial year remains unchanged.
+- Failure to furnish PAN continues to attract 20% deduction under Section 206AA.

package/okf/direct_tax/tds_commission_194h/forms/form_26q_quarterly_return.json

@@ -0,0 +1,30 @@
+{
+  "formId": "FORM_26Q_194H",
+  "title": "Quarterly Statement of Tax Deducted at Source on Payment of Commission or Brokerage",
+  "applicableSectionCode": "194H",
+  "tdsSectionCode": "94H",
+  "governingRule": "Income-tax Rules, 1962 (Rule 31A)",
+  "filingFrequency": "QUARTERLY",
+  "dueDates": {
+    "Q1_Apr_Jun": "July 31",
+    "Q2_Jul_Sep": "October 31",
+    "Q3_Oct_Dec": "January 31",
+    "Q4_Jan_Mar": "May 31"
+  },
+  "requiredChallanFields": [
+    "BSR_CODE_7_DIGIT",
+    "CHALLAN_TENDER_DATE",
+    "CHALLAN_SERIAL_NO_5_DIGIT",
+    "TAX_DEPOSITED_AMOUNT_INR",
+    "MAJOR_HEAD_0021_OR_0020"
+  ],
+  "deducteeRecordFields": [
+    "PAN_OF_BROKER_OR_AGENT",
+    "NAME_OF_BROKER_OR_AGENT",
+    "GROSS_COMMISSION_PAID_OR_CREDITED_INR",
+    "TDS_RATE_APPLIED_PERCENT",
+    "TAX_DEDUCTED_AMOUNT_INR",
+    "DATE_OF_DEDUCTION",
+    "REASON_FOR_LOWER_OR_NON_DEDUCTION"
+  ]
+}

package/okf/direct_tax/tds_commission_194h/section.json

@@ -0,0 +1,63 @@
+{
+  "sectionId": "ITA1961_SEC194H",
+  "sectionCode": "194H",
+  "aliases": [
+    "194H",
+    "194h",
+    "sec194h",
+    "commission tds",
+    "brokerage tds",
+    "tds on commission",
+    "brokerage"
+  ],
+  "governingStatute": "Income-tax Act, 1961 (Act No. 43 of 1961)",
+  "statutorySection": "Section 194H",
+  "successorStatute": "Income-tax Act, 2025",
+  "successorSection": "Section 393(1), Table 4, Item (i)",
+  "title": "Deduction of tax at source on commission or brokerage",
+  "effectivePeriod": {
+    "validFrom": "2001-06-01",
+    "validTo": "2026-03-31",
+    "annualReset": "Every April 1 (Cumulative Commission Resets Annually)",
+    "sunsetNotes": "Transitions to Section 393(1) Table 4 Item (i) of the Income-tax Act, 2025 effective 1 April 2026."
+  },
+  "plainTextSummary": "Any person responsible for paying any income by way of commission or brokerage to a resident is required to deduct tax at source. Statutory Rate: 2% effective 1 October 2024 as amended by Finance (No. 2) Act, 2024 (prior to 1 October 2024, the rate was 5%). Threshold: Tax is deductible only if the aggregate amount of commission or brokerage credited or paid during the financial year exceeds ₹15,000. Statutory Exclusions: Does not apply to insurance commission (covered under Section 194D) or underwriting commission. Non-PAN penalty rate under Section 206AA is 20%. Under CBDT Circular 23/2017, where GST is separately stated, TDS applies on commission excluding GST.",
+  "keyStatutoryThresholds": {
+    "annualAggregateThresholdInr": 15000,
+    "standardRatePercent": 2.0,
+    "preOct2024RatePercent": 5.0,
+    "rateChangeEffectiveDate": "2024-10-01",
+    "nonCompliantPanPenaltyRatePercent": 20.0,
+    "commissionBrokerageScope": "Includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.",
+    "cbdtCircular23GstExclusion": "TDS applies on basic commission amount excluding separately stated GST."
+  },
+  "officialCitations": [
+    {
+      "authority": "Parliament of India / Ministry of Finance",
+      "instrument": "Finance (No. 2) Act, 2024 (Act No. 15 of 2024) amending Section 194H",
+      "subject": "Reduction of TDS rate on commission and brokerage from 5% to 2% w.e.f. 1 October 2024",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Parliament of India / Ministry of Finance",
+      "instrument": "Income-tax Act, 2025 Section 393(1), Table 4, Item (i)",
+      "subject": "TDS on commission and brokerage under new Direct Tax Code",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Central Board of Direct Taxes (CBDT)",
+      "instrument": "Circular No. 23 of 2017",
+      "subject": "Exclusion of GST component from value of commission for tax deduction at source",
+      "officialUrl": "https://incometaxindia.gov.in/communications/circular/circular23_2017.pdf"
+    }
+  ],
+  "requiredDocumentChecklist": [
+    "Brokerage / Agency Agreement establishing commercial terms and commission structure",
+    "Agent / Broker PAN verification",
+    "Cumulative Commission Ledger for current FY establishing date threshold of ₹15,000 was crossed",
+    "Broker commission billing invoice with GST separately indicated",
+    "Lower deduction certificate under Section 197 / Section 395 (if agent provides certificate)"
+  ],
+  "tier": "PUBLIC_COMMONS_FREE",
+  "version": "2.5.0"
+}

package/okf/direct_tax/tds_contractor_194c/circulars/cbdt_circular_23_2017_gst_unbundling.md

@@ -0,0 +1,27 @@
+---
+id: cbdt_circular_23_2017_194c
+title: CBDT Circular No. 23 of 2017 - TDS on Works Contracts (GST Unbundling)
+authority: Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance
+date: 2017-07-19
+statutory_section: Section 194C / Chapter XVII-B
+valid_from: 2017-07-01
+valid_to: OPEN_ENDED
+temporal_status: ACTIVE
+subject: Exclusion of separately stated GST from basic taxable amount for TDS on works contracts
+official_url: https://incometaxindia.gov.in/communications/circular/circular23_2017.pdf
+---
+
+> [STATUTORY VALIDITY WINDOW & TEMPORAL STATUS]  
+> **Valid From**: 1 July 2017  
+> **Valid To**: OPEN_ENDED (Active guidance under Chapter XVII-B and transitional savings under Income-tax Act, 2025 Section 536(2))  
+> **Temporal Status**: ACTIVE  
+> **Applicable Principle**: Tax is deducted at source strictly on the basic contract value when GST is separately stated on invoice.  
+
+# CBDT Circular No. 23 of 2017: Treatment of GST on Contractor Invoices
+
+## 1. Statutory Clarification
+Under Section 194C of the Income-tax Act, 1961, tax is deductible on the payment of any sum to a resident contractor. Where the contractor indicates the GST component (CGST, SGST, IGST, UTGST) separately on the tax invoice, tax shall be deducted at source strictly on the amount paid or credited without including such GST component.
+
+## 2. Invoicing Standard
+- Separately itemized GST: Deduct TDS at 1% or 2% on pre-tax basic amount.
+- Composite billing without separate GST itemization: Deduct TDS on gross invoice amount.

package/okf/direct_tax/tds_contractor_194c/forms/form_26q_quarterly_return.json

@@ -0,0 +1,31 @@
+{
+  "formId": "FORM_26Q_194C",
+  "title": "Quarterly Statement of Tax Deducted at Source on Payments to Contractors",
+  "applicableSectionCode": "194C",
+  "tdsSectionCode": "94C",
+  "governingRule": "Income-tax Rules, 1962 (Rule 31A)",
+  "filingFrequency": "QUARTERLY",
+  "dueDates": {
+    "Q1_Apr_Jun": "July 31",
+    "Q2_Jul_Sep": "October 31",
+    "Q3_Oct_Dec": "January 31",
+    "Q4_Jan_Mar": "May 31"
+  },
+  "requiredChallanFields": [
+    "BSR_CODE_7_DIGIT",
+    "CHALLAN_TENDER_DATE",
+    "CHALLAN_SERIAL_NO_5_DIGIT",
+    "TAX_DEPOSITED_AMOUNT_INR",
+    "MAJOR_HEAD_0021_OR_0020"
+  ],
+  "deducteeRecordFields": [
+    "PAN_OF_CONTRACTOR",
+    "NAME_OF_CONTRACTOR",
+    "CONTRACTOR_ENTITY_TYPE_INDIVIDUAL_OR_OTHER",
+    "GROSS_AMOUNT_PAID_OR_CREDITED_INR",
+    "TDS_RATE_APPLIED_PERCENT",
+    "TAX_DEDUCTED_AMOUNT_INR",
+    "DATE_OF_DEDUCTION",
+    "REASON_FOR_LOWER_OR_NON_DEDUCTION"
+  ]
+}

package/okf/direct_tax/tds_contractor_194c/forms/transporter_194c_declaration.json

@@ -0,0 +1,14 @@
+{
+  "formId": "TRANSPORTER_DECLARATION_194C_6",
+  "title": "Declaration by Goods Transport Operator under Section 194C(6) for Non-Deduction of TDS",
+  "applicableSectionCode": "194C",
+  "governingStatute": "Income-tax Act, 1961 Section 194C(6)",
+  "purpose": "Statutory proof exempting payment to goods carriage operator from TDS deduction",
+  "requiredDeclarations": [
+    "TRANSPORTER_LEGAL_NAME",
+    "TRANSPORTER_VALID_PAN",
+    "DECLARATION_MAX_10_CARRIAGES_OWNED_DURING_FY",
+    "VEHICLE_REGISTRATION_NUMBERS_LIST",
+    "AUTHORIZED_SIGNATURE_AND_STAMP"
+  ]
+}

package/okf/direct_tax/tds_contractor_194c/section.json

@@ -0,0 +1,66 @@
+{
+  "sectionId": "ITA1961_SEC194C",
+  "sectionCode": "194C",
+  "aliases": [
+    "194C",
+    "194c",
+    "sec194c",
+    "contractor tds",
+    "works contract",
+    "subcontractor tds",
+    "sub-contractor"
+  ],
+  "governingStatute": "Income-tax Act, 1961 (Act No. 43 of 1961)",
+  "statutorySection": "Section 194C",
+  "successorStatute": "Income-tax Act, 2025",
+  "successorSection": "Section 393(1), Table 3, Item (i)",
+  "title": "Deduction of tax at source on payments to contractors and sub-contractors",
+  "effectivePeriod": {
+    "validFrom": "1972-04-01",
+    "validTo": "2026-03-31",
+    "annualReset": "Every April 1 (Cumulative Invoices Reset Annually)",
+    "sunsetNotes": "Transitions to Section 393(1) Table 3 Item (i) of the Income-tax Act, 2025 effective 1 April 2026."
+  },
+  "plainTextSummary": "Any person responsible for paying any sum to a resident contractor for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person must deduct tax at source. Statutory Rates: (a) 1% where the payment is being made or credited to an individual or a Hindu Undivided Family (HUF); (b) 2% where the payment is being made or credited to any person other than an individual or a HUF (companies, partnership firms, LLPs, AOPs, BOIs). Thresholds: Tax is deductible if a single contract or invoice exceeds ₹30,000, OR if the aggregate of amounts paid or credited to the contractor during the financial year exceeds ₹1,00,000. Transport Operator Exemption: Under Section 194C(6), no deduction shall be made from any sum credited or paid to a contractor during the course of business of plying, hiring, or leasing goods carriages, where such contractor owns 10 or fewer goods carriages at any time during the previous year and furnishes a declaration to that effect along with their PAN. Non-PAN penalty rate under Section 206AA is 20%.",
+  "keyStatutoryThresholds": {
+    "singleContractThresholdInr": 30000,
+    "annualAggregateThresholdInr": 100000,
+    "individualHufRatePercent": 1.0,
+    "otherEntitiesRatePercent": 2.0,
+    "nonCompliantPanPenaltyRatePercent": 20.0,
+    "transporterGoodsCarriageLimit": 10,
+    "transporterExemptionRule": "No deduction under Section 194C(6) if transporter owns <= 10 goods carriages and furnishes written declaration with valid PAN.",
+    "workDefinitionScope": "Includes advertising, broadcasting and telecasting, carriage of goods or passengers by any mode of transport other than railways, and catering. Does not include manufacturing or supplying a product according to requirements of customer using materials purchased from a person other than such customer.",
+    "cbdtCircular23GstExclusion": "TDS applies on basic contract amount excluding separately stated GST."
+  },
+  "officialCitations": [
+    {
+      "authority": "Ministry of Law & Justice / CBDT",
+      "instrument": "Section 194C, Income-tax Act, 1961",
+      "subject": "Payments to contractors and sub-contractors",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Parliament of India / Ministry of Finance",
+      "instrument": "Income-tax Act, 2025 Section 393(1), Table 3, Item (i)",
+      "subject": "TDS on contractor payments under new Direct Tax Code",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Central Board of Direct Taxes (CBDT)",
+      "instrument": "Circular No. 23 of 2017",
+      "subject": "Exclusion of GST component from value of contract for tax deduction at source",
+      "officialUrl": "https://incometaxindia.gov.in/communications/circular/circular23_2017.pdf"
+    }
+  ],
+  "requiredDocumentChecklist": [
+    "Vendor PAN verification (Checked against TRACES / Income Tax Portal)",
+    "Contract / Work Order specifying scope of work and payment terms",
+    "Cumulative Billing Ledger for current FY establishing if aggregate payments exceeded ₹1,00,000 or single bill exceeded ₹30,000",
+    "Section 194C(6) Transporter Declaration & vehicle RC book proofs if claiming 0% transport contractor exemption",
+    "Tax invoice with GST separately indicated (to deduct strictly on basic amount)",
+    "Lower deduction certificate under Section 197 / Section 395 (if vendor provides certificate)"
+  ],
+  "tier": "PUBLIC_COMMONS_FREE",
+  "version": "2.5.0"
+}

package/okf/direct_tax/tds_rent_194i/circulars/cbdt_circular_23_2017_gst_unbundling.md

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+---
+id: cbdt_circular_23_2017_194i
+title: CBDT Circular No. 23 of 2017 - TDS on Rent (GST Unbundling)
+authority: Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance
+date: 2017-07-19
+statutory_section: Section 194I / Chapter XVII-B
+valid_from: 2017-07-01
+valid_to: OPEN_ENDED
+temporal_status: ACTIVE
+subject: Exclusion of separately stated GST from basic rent amount for TDS under Section 194I
+official_url: https://incometaxindia.gov.in/communications/circular/circular23_2017.pdf
+---
+
+> [STATUTORY VALIDITY WINDOW & TEMPORAL STATUS]  
+> **Valid From**: 1 July 2017  
+> **Valid To**: OPEN_ENDED (Active guidance under Chapter XVII-B and transitional savings under Income-tax Act, 2025 Section 536(2))  
+> **Temporal Status**: ACTIVE  
+> **Applicable Principle**: Tax is deducted at source strictly on the basic rent when GST is separately charged by landlord.  
+
+# CBDT Circular No. 23 of 2017: Treatment of GST on Rent Invoices
+
+## 1. Statutory Clarification
+Under Section 194I of the Income-tax Act, 1961, tax is deductible on payment of rent exceeding ₹2,40,000 per financial year. Where the landlord/lessor indicates GST separately on the invoice or rent receipt, tax shall be deducted at source strictly on the basic rent amount without including the GST component.
+
+## 2. Invoicing Standard
+- Separately itemized GST: Deduct TDS at 2% (machinery) or 10% (land/building) on basic rental amount.
+- Composite billing without separate GST itemization: Deduct TDS on gross billed amount.

package/okf/direct_tax/tds_rent_194i/forms/form_26q_quarterly_return.json

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+{
+  "formId": "FORM_26Q_194I",
+  "title": "Quarterly Statement of Tax Deducted at Source on Payment of Rent",
+  "applicableSectionCode": "194I",
+  "tdsSectionCode": "94I",
+  "governingRule": "Income-tax Rules, 1962 (Rule 31A)",
+  "filingFrequency": "QUARTERLY",
+  "dueDates": {
+    "Q1_Apr_Jun": "July 31",
+    "Q2_Jul_Sep": "October 31",
+    "Q3_Oct_Dec": "January 31",
+    "Q4_Jan_Mar": "May 31"
+  },
+  "requiredChallanFields": [
+    "BSR_CODE_7_DIGIT",
+    "CHALLAN_TENDER_DATE",
+    "CHALLAN_SERIAL_NO_5_DIGIT",
+    "TAX_DEPOSITED_AMOUNT_INR",
+    "MAJOR_HEAD_0021_OR_0020"
+  ],
+  "deducteeRecordFields": [
+    "PAN_OF_LANDLORD_OR_LESSOR",
+    "NAME_OF_LANDLORD_OR_LESSOR",
+    "RENT_CATEGORY_PLANT_MACHINERY_OR_LAND_BUILDING",
+    "GROSS_RENT_PAID_OR_CREDITED_INR",
+    "TDS_RATE_APPLIED_PERCENT",
+    "TAX_DEDUCTED_AMOUNT_INR",
+    "DATE_OF_DEDUCTION",
+    "REASON_FOR_LOWER_OR_NON_DEDUCTION"
+  ]
+}

package/okf/direct_tax/tds_rent_194i/section.json

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+{
+  "sectionId": "ITA1961_SEC194I",
+  "sectionCode": "194I",
+  "aliases": [
+    "194I",
+    "194i",
+    "sec194i",
+    "rent tds",
+    "tds on rent",
+    "commercial rent",
+    "office rent",
+    "equipment rent"
+  ],
+  "governingStatute": "Income-tax Act, 1961 (Act No. 43 of 1961)",
+  "statutorySection": "Section 194I",
+  "successorStatute": "Income-tax Act, 2025",
+  "successorSection": "Section 393(1), Table 5, Item (i)",
+  "title": "Deduction of tax at source on payment of rent",
+  "effectivePeriod": {
+    "validFrom": "1994-06-01",
+    "validTo": "2026-03-31",
+    "annualReset": "Every April 1 (Cumulative Rent Resets Annually)",
+    "sunsetNotes": "Transitions to Section 393(1) Table 5 Item (i) of the Income-tax Act, 2025 effective 1 April 2026."
+  },
+  "plainTextSummary": "Any person (other than an individual or a HUF not subject to tax audit) paying any income by way of rent to a resident is required to deduct tax at source. Statutory Rates: (a) 2% for the use of any machinery, plant, or equipment; (b) 10% for the use of any land, building (including factory building), land appurtenant to a building, furniture, or fittings. Threshold: Tax is deductible only if the aggregate amount of rent credited or paid during the financial year exceeds ₹2,40,000. Non-PAN / Inoperative PAN penalty rate under Section 206AA is 20%. Under CBDT Circular 23/2017, where GST is separately stated in the invoice, TDS applies strictly on the basic rent excluding GST.",
+  "keyStatutoryThresholds": {
+    "annualAggregateThresholdInr": 240000,
+    "plantMachineryEquipmentRatePercent": 2.0,
+    "landBuildingFurnitureRatePercent": 10.0,
+    "nonCompliantPanPenaltyRatePercent": 20.0,
+    "rentDefinitionScope": "Any payment under any lease, sub-lease, tenancy, or other agreement for use of land, building, machinery, plant, equipment, furniture, or fittings, whether or not owned by payee.",
+    "cbdtCircular23GstExclusion": "TDS applies strictly on basic rent excluding separately stated GST."
+  },
+  "officialCitations": [
+    {
+      "authority": "Ministry of Law & Justice / CBDT",
+      "instrument": "Section 194I, Income-tax Act, 1961",
+      "subject": "Deduction of tax at source on payment of rent",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Parliament of India / Ministry of Finance",
+      "instrument": "Income-tax Act, 2025 Section 393(1), Table 5, Item (i)",
+      "subject": "TDS on rent under new Direct Tax Code",
+      "officialUrl": "https://incometaxindia.gov.in"
+    },
+    {
+      "authority": "Central Board of Direct Taxes (CBDT)",
+      "instrument": "Circular No. 23 of 2017",
+      "subject": "Exclusion of GST component from rent value for tax deduction at source",
+      "officialUrl": "https://incometaxindia.gov.in/communications/circular/circular23_2017.pdf"
+    }
+  ],
+  "requiredDocumentChecklist": [
+    "Executed Lease Agreement / Rent Agreement specifying premises or equipment and monthly rent",
+    "Landlord / Lessor PAN verification",
+    "Cumulative Rent Ledger for current FY establishing date threshold of ₹2,40,000 was crossed",
+    "Rent invoice or debit note with GST separately broken out (if lessor is GST registered)",
+    "Lower deduction certificate under Section 197 / Section 395 (if lessor provides certificate)"
+  ],
+  "tier": "PUBLIC_COMMONS_FREE",
+  "version": "2.5.0"
+}

package/okf/indirect_tax_gst/composite_mixed_supplies_sec8/circulars/cbic_circular_47_2018_composite_mixed_supplies.md

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+---
+id: cbic_circular_47_2018_composite_mixed_supplies
+title: CBIC Circular 47/21/2018-GST: Clarifications on Classification of Composite and Mixed Supplies
+authority: Central Board of Indirect Taxes and Customs (CBIC)
+date: 2018-06-08
+statutory_section: Section 8 read with Section 2(30) and 2(74) of CGST Act, 2017
+valid_from: 2017-07-01
+valid_to: OPEN_ENDED
+temporal_status: ACTIVE
+official_url: https://taxinformation.cbic.gov.in
+---
+
+# CBIC Circular No. 47/21/2018-GST: Composite and Mixed Supplies Guidance
+
+## 1. Statutory Context & Principles of Bundling
+Section 8 of the CGST Act, 2017 provides the statutory mechanism for resolving the taxability of bundled transactions. 
+
+Transactions frequently comprise multiple supplies of goods or services provided under a unified commercial engagement. Determining whether such bundled supplies represent a Composite Supply under Section 8(a) or a Mixed Supply under Section 8(b) is essential for correct tax rate application.
+
+## 2. Test of Composite Supply (Naturally Bundled)
+Under Section 2(30), a composite supply comprises two or more taxable supplies of goods or services or both, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
+
+### Criteria for Determining Natural Bundling:
+1. **Consumer Expectation & Trade Practice**: The perception of the consumer or the normal practice of the trade is that the package of goods and services is provided together (e.g., supply of laptop with warranty and charger, or passenger air transport with baggage handling).
+2. **Integral Nature**: One element is clearly ancillary to the predominant element; the ancillary element cannot be realistically enjoyed without the principal supply.
+3. **Principal Element**: One component represents the primary aim of the customer (principal supply under Section 2(90)).
+
+Tax Treatment: The entire bundled transaction is taxed at the rate applicable to the Principal Supply.
+
+## 3. Test of Mixed Supply (Single Price for Distinct Supplies)
+Under Section 2(74), a mixed supply comprises two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
+
+### Key Factors:
+1. The goods or services are not naturally bundled in the ordinary course of business.
+2. The items can be easily supplied and purchased independently.
+3. A single, undivided price is charged for the package.
+
+Tax Treatment: The entire transaction is taxed at the Highest Rate applicable to any of the individual components.
+
+## 4. Itemized Invoicing Safe Harbor
+Where individual goods and services are contracted with independent itemized prices and are not naturally bundled, each component retains its own statutory tax rate, provided the transaction is not artificially structured to evade tax on a composite whole.